IRS updates backup withholding CP2100 and CP2100A notices

John Croyle

December 28, 2019

IRS updates backup withholding CP2100 and CP2100A notices

On November 14, 2019, the IRS issued a statement that they had redesigned the CP2100 and CP2100 notices and given them a new look. The new notices were updated to provide additional information to companies that file information returns like From 1099-MISC. The additional information added includes:

the types of taxpayer identification numbers issued

guidance on which “B” notice to use

instructions on how and when to send “B” notices

direction on how to validate TINs

information on when to stop backup withholding

next steps after receiving a notice

The IRS typically sends out these notices (CP2100 is sent to large and midsize filers. CP2100A is sent to small filers) to companies in October and again in the following April. The notices inform companies that they might be responsible for 24% backup withholding on all 1099s filed with the IRS that had TINs not found in the IRS database or with an incorrect name/TIN combination. The CP2100 or CP2100A notice will list the payees from the 1099s submitted that had one of these issues. The company should follow the “B” notice requirements in IRS Publication 1281.